A really surprising move was made yesterday and it looked very much like the shock treatment given to bulls on the 31st March trade continued, as NIFTY opened remarkably lower contrary to everyone's expectation. Even SGX NIFTY was trading higher then.
The opening was another shocker for the already weak bulls and looked like NIFTY is going to go completely lower from that level. Bears were all very happy and were rejoicing at the open, but that is where the trap for the next bigger move was made, that too mildly and silently so that bears didnt even realize that they were being taken for a ride. At the end of the day, even the weakest of the weak bull that remained silent on March 31 and on yesterday's open survived.
What does this indicate?
The strongest of the strong bear is trapped and so it is time for bulls to rise ferociously as mentioned in the ealier post. The immediate level to watchout for is 3110 and a move above 3125 will make all the bears (fresh ones and those who rolled over their shorts from earlier expiry) to run for cover pushing NIFTY further up.
The only glitch is that some of the heavy weights like RELIANCE, ONGC and INFOSYS are already near their 200 DMA and might not be able to break through that barrier and move higher straight. The other candidates being bank stocks like ICICI, SBI still have a huge potential to move upside and so if at all the theory is held that NIFTY has to move higher, then they could contribute significantly.
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